HSBC (HSBA) Q4 2025 earnings summary

Executive summary

• Achieved strong full-year 2025 performance with $71.0bn revenue (+5% YoY) and $36.6bn profit before tax (+7% YoY), with all business segments delivering mid-teens or better RoTE.

• Completed the $13.7 billion privatization of Hang Seng Bank, unlocking up to $0.9 billion in synergies and cost efficiencies by 2028.

• Strategic transformation focused on simplification, cost discipline, customer-centricity, and investment in technology and talent.

• Set new growth and return targets for 2026–2028: 5% revenue growth by 2028 and RoTE of 17% or better annually.

Financial highlights

• Group revenues grew 5% YoY to $71 billion; Q4 revenues up 6% to $17.7 billion.

• Profit before tax rose 7% to a record $36.6 billion.

• Return on tangible equity reached 17.2% for the full year.

• Ordinary dividend per share increased 14% to $0.75; EPS excluding notable items $1.51 (+15% YoY).

• Customer deposit balances grew 5% to $1.8 trillion, with $78 billion increase including held-for-sale balances.

• CET1 capital ratio at 14.9%, up 40 basis points in the quarter.

Outlook and guidance

• Targeting 5% annual revenue growth by 2028, excluding notable items.

• RoTE target of 17% or better for 2026–2028, with a 50% dividend payout ratio, excluding material notable items.

• 2026 Banking NII expected at least $45 billion, with deposit growth and structural hedge offsetting lower rates.

• ECL charge guidance for 2026 at around 40 basis points, reflecting economic outlook and sector pressures.

• Cost growth constrained to 1% in 2026, benefiting from simplification savings.

• CET1 ratio target range of 14-14.5%.